South Korea’s government announced on Wednesday that it plans to create a 50 trillion won ($34.4 billion) fund to support advanced industries including semiconductors, rechargeable batteries, bio, artificial intelligence (AI) and other industries in a bid to bolster the country’s industrial competitiveness. The plan was endorsed at a weekly meeting presided by acting President Choi Sang-mok, according to the finance ministry.
The new fund aims to strengthen the global competitiveness of advanced industries in South Korea, which play a critical role in national economic security amid growing uncertainties. The fund will also be used to support robotics and other advanced industries. It will also be funneled into developing infrastructure and core technologies for the industries in the long term, according to the ministry.
South Korea seeks skilled foreigners
Further supporting these key industries, the government also announced new policies to attract talent working in cutting-edge industries from around the world. South Korea said on Wednesday it would offer “top-tier” visas and permanent residency to skilled foreigners with experience working in global firms to make it easier for them to join domestic companies in advanced sectors.
“Competitiveness in advanced strategic industries has emerged to be the core of national economic security amid heightened external uncertainty under the new U.S. administration,” the government said.
Since returning to office earlier this year, U.S. President Donald Trump has initiated a series of tariff threats targeting major trading partners and various industries, including chips, autos and biopharmaceuticals.
Korea Development Bank’s fund will be offered to companies in national strategic industries in the form of cheap loans and other investments over the next five years.
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South Korea bolsters efforts to support chip industry
In recent years, South Korea designated 12 industries as national strategic technologies with targeted financial support and protection to respond to intensifying global competition and the fragmentation of supply chains. These include industries such as semiconductors, future mobility, rechargeable batteries, biopharmaceuticals, aerospace and artificial intelligence, among others.
Last year, South Korea announced that it plans to allocate low-interest loans and additional support totaling 8.8 trillion won ($6.45 billion) for the semiconductor sector in 2025, aiming to enhance the competitiveness of this vital industry.
In mid-2024, South Korea’s Minister of Finance, Choi Sang-mok, revealed that the country plans to support the semiconductor industry with over 10 trillion won ($7.30 billion) for chip investments and research. This funding boost falls in line with South Korea’s efforts to boost its semiconductor industry, which is a vital component of its export-driven economy.
In April last year, South Korea’s President Yoon Suk Yeol also announced an initiative to invest 9.4 trillion won ($6.94 billion) in AI by 2027. The funding aims to fuel research and development efforts, particularly in AI chips such as artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips.
South Korea had outlined plans to expand research and development in next-generation artificial general intelligence (AGI) and safety technologies. Hence, the country aims to have a market share of 10 percent or more in the global system semiconductor market by 2030.
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